We present high-dispersion spectroscopic data of the compact planetary nebula Vy 1-2, where high expansion velocities up to 100 km s −1 are found in the Hα, [N ii] and [O iii] emission lines. HST images reveal a bipolar structure. Vy 1-2 displays a bright ring-like structure with a size of 2.4 ′′ ×3.2 ′′ and two faint bipolar lobes in the west-east direction. A faint pair of knots is also found, located almost symmetrically on opposite sides of the nebula at PA=305 • . Furthermore, deep low-dispersion spectra are also presented and several emission lines are detected for the first time in this nebula, such as the doublet [Cl iii] 5517, 5537Å, [K iv] 6101Å, C ii 6461Å, the doublet C iv 5801, 5812Å. By comparison with the solar abundances, we find enhanced N, depleted C and solar O. The central star must have experienced the hot bottom burning (CNcycle) during the 2 nd dredge-up phase, implying a progenitor star of M 3 M ⊙ . The very low C/O and N/O abundance ratios suggest a likely post-common envelope close binary system.A simple spherically symmetric geometry with either a blackbody or a H-deficient stellar atmosphere model is not able to reproduce the ionisation structure of Vy 1-2. The effective temperature and luminosity of its central star indicate a young nebula located at a distance of ∼9.7 kpc with an age of ∼3500 years. The detection of stellar emission lines, C ii 6461Å, the doublet C ivλλ 5801, 5812 and O iii 5592Å, emitted from a H-deficient star, indicates the presence of a late-type Wolf-Rayet or a WEL type central star.